Firms Struggle to Align Compensation, Business Strategy

Even though many companies plan to increase organization-wide compensation during the next year, murkiness remains as to how connected firms’ compensation programs are with overall business strategy.

Roughly 40 percent of companies say their organization’s compensation program is fully aligned with the business strategy, according to a 2014 compensation and benefits survey by Human Capital Media Advisory Group, the research arm of Talent Management magazine. Still, about 35 percent of those surveyed did not think their organization’s compensation program aligned with the business strategy, while 25 percent weren’t sure.

The HCM survey included 198 respondents who are human resources professionals from companies of varying size and industry.

Meanwhile, about 42 percent of HR professionals surveyed said their organizations plan to increase compensation during the next year, while 52 percent said it would stay the same and about 6 percent said compensation would decrease.

Read more: Talent Management


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